Coin Edition -
- Mt. Gox creditors receive updates on the $9 billion Bitcoin payout.
- Repayment details include the number of tokens and potential dates.
- Concern remains over the impact of mass sell-off on Bitcoin price.
Creditors of the once-dominant Mt. Gox cryptocurrency exchange have received long-awaited updates on their claims, indicating a potential turning point in the disbursement of a $9 billion Bitcoin hoard.
These updates, according to creditors, include details such as the specific number of digital tokens slated for return and, in some cases, even tentative repayment dates. This marks a significant development for creditors who have been in limbo for nearly a decade following Mt. Gox’s collapse in 2014.
Mt. Gox, headquartered in Tokyo, reigned supreme as the world’s leading Bitcoin exchange before succumbing to a devastating hack in 2011. The hack resulted in the loss of a substantial portion of Mt. Gox’s Bitcoin holdings, ultimately forcing the exchange to file for bankruptcy three years later. Currently, the fallen platform holds roughly 137,892 Bitcoin, with an estimated market value of $9.2 billion.
The news of potential repayments comes as a welcome relief for creditors who have endured years of uncertainty. Brian Dixon, CEO of Off the Chain Capital, a firm that acquired Mt. Gox claims, expressed cautious optimism.
He noted that this is the first time creditors have received such specific updates regarding the repayment process, highlighting it as a “good sign and a step in the right direction.” While Dixon confirmed receiving a repayment date, he restricted himself from disclosing the specific timeframe.
Similarly, Adam Back, CEO of blockchain infrastructure provider Blockstream and another creditor, reported receiving updates on the number of tokens he is slated to receive but is still awaiting concrete repayment dates.
The bankruptcy process has left many creditors wondering when they will see their lost funds returned. Furthermore, creditors are concerned that the allocation of these Bitcoin holdings has an impact on the cryptocurrency’s market price. A mass sell-off by creditors could create a downward spiral for Bitcoin. However, as of Tuesday morning, the market appeared to be taking the news in stride with Bitcoin prices remaining relatively stable at around $66,710. It’s worth noting that Bitcoin’s value was a fraction of this amount when Mt. Gox went bankrupt, potentially mitigating the immediate impact of any large-scale sell-off.
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